No Showdown, But Apple’s Annual Meeting May Still be Tense

As recently as last week, it looked like the annual event in Cupertino, Calif. would be a showdown between the company and hedge-fund investor David Einhorn, who was trying to rally Apple shareholders to oppose a controversial proxy measure as a referendum on the company’s cash.

But Apple pulled the measure after a judge ruled that the vote couldn’t proceed because the way Apple proposed it could disadvantage investors. Apple hasn’t indicated whether it plans to reinstate the proposal.

That’s not to say that the spirit of the measure and Einhorn’s unease won’t loom large. Investors want to get their hands on some of Apple’s ballooning $137 billion in cash. With the company’s earnings growth slowing, many are convinced Apple needs to turn to its balance sheet to move the stock.

The official bits of the meeting are unlikely to yield major headlines. There is an advisory “say-on-pay” vote, the election of directors and a shareholder proposal to establish a board committee on human rights. (If history is a guide, there will also likely be a paltry offering of snacks; Apple’s not one for corporate largesse.)

But here are three things investors will be watching for during the meeting, which starts at 9 a.m. Pacific time.

Cash: As the hottest topic right now, any comments from CEO Tim Cook about distributing some will be parsed intensely.

He has a history of choosing his words carefully, and recent comments that Apple is in “very active discussions” about returning more cash to shareholders has some investors hopeful he’ll have more to announce soon. But many bet that the company will wait for Washington to sort out potential changes to corporate tax rules first and aren’t holding their breath.

Products: Apple can’t shake questions about the “next new thing” and the sense among some investors and consumers that Apple’s innovations of late have been incremental.

Cook isn’t likely to say much about new products, such as a less expensive iPhone. His line on that to date has been that the company has successfully diversified its iPod line-up in the past and that Apple is focused on making great products not hitting a certain price. Any deviation from those remarks would be interesting.

Stock split: Among the many rumors circulating about the company is that it may announce a stock-split as a way to broaden investor interest in the floundering stock. Mr. Cook said about a year ago that the company had dismissed the idea because there was “very little support” that a split would help the stock. We’ll see whether he has any update Wednesday.